Cable MSO Update: RiskView® Cost-Savings Case Study Outage Risk Analytics Robert Cruickshank CEO & CTO [email protected] (703) 568-8379.

Cable MSO Update: RiskView® Cost-Savings Case Study

Outage Risk Analytics

Robert Cruickshank

CEO & CTO

[email protected]

(703) 568-8379

Characteristics of a hidden issue include:

Small and intermittent Below real-time thresholds Not detected right away Add up in cost over time Get worse and become larger

Some issues - even after fixes - remain problematic & costly

Key Outcomes: Cost-savings analysis reveals “death by a thousand paper cuts” Proactively identifying issues saves money on calls and maintenance The longer an issue persists, the more voluntary disconnects result A key attribute of RV is its ability to identify incidents that lead to voluntary disconnects

RiskView Cost Savings

Hidden issues often last for days, resulting in a snowballing effect of voluntary disconnects.

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Correlation and Risk Concentration Analysis™ enables RV to find issues that are otherwise hidden.

RiskView Architecture

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RiskView® 90-Day Cost-Savings Case Study

MSO Case Study

Parameters of Blind Comparison Study by Maintenance Department

• 1,000,000 subs in Region | 35,000 HFC miles | 180 technicians | 15 supervisors | 4 managers | 1 director

• 7,500 nodes in 3,000 DOCSIS Serving Groups (combinations of nodes)

Hypothesis

• [operating cost without Automation – operating cost with Automation] = Quantifiable Savings

Study Groups

• Control Group = Business as Usual (BAU)

• Test Group = RiskView (RV) Outage Risk Analytics

Goals

• Minimize downtime of the “operating assets”

To enhance customer satisfaction while lowering care and support costs

• Monitor maintenance activity for its effectiveness

Earlier detection helps in solving chronic problems thereby reducing disconnects

Departments Impacted by Control Group Discovered Issues

• Service Department focuses on Non-Area Issues

• Maintenance Department focuses on Area issues

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Call Center Connectivity Calls & Repeats

Field Service e.g., ARRIS WorkAssure TC = Service Calls & Repeats EC = Refer to Maintenance DI = Voluntary Disconnects Biz/Residential, 1/2/3 Services

Maintenance Activity Planned, Demand

Telemetry e.g., ARRIS SAA Hourly Degraded CMs US/DS Errors/SNR/Power/Util On/Offline, Node Combining Find & Fix More Issues,

Reduce Calls, TCs, Disconnects

Field Activity

Failed Telemetry

Connectivity Calls

Systematically Correlate Multiple Inputs Over Time

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Transaction Analytics

Problem Period: Any event which had a Reputational Cost of more than 15 transactions on a given day and stayed above 10 transactions for two days.

Reputational Cost: A dimensionless number that quantifies the potential effects on the reputation of the MSO among customers owing to the persistent problems in the network. It is represented by the following formula:

Call + 2*TC + RepTC + 3*EC + 2*DI + CHG + TRB + Fluctuating Levels + DnErr + UpErr

90-day Summary: Total problem periods identified by RV: 4,208 38% of these problem periods had BAU activity

RV identified 6% of problem periods before BAU did

Transactions Conn Calls TCs ECs DIs

Study Period 345,602 121,914 11,048 68,834

Problem Period 139,748 17,086 2,308 5,801

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Problem Period Example with Savings

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Model assumption: Early detection by RiskView saves 50% of the eventual cost.

A Serving Group with 8 Problem Periods

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Problem

period

Finding: Reputational cost of 15 is a reliable early warning indicator.

Accumulation of Problem Periods – 90 days

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15% of Problem Periods last 4 days or longer.

Total Problem Periods: 4,108

Disconnects – 90 Days

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Total Disconnects: 68,834

Total Problem Periods: 4,208

• The average number of voluntary disconnects steadily rise with the rise in the duration of problem period.

• With early detection, an operator can save on voluntary disconnects by fixing the problems in time.

Transactional Savings Impact on P&L (Proforma)

Maintenance Department: Additional Work 16K Preventative Maintenance Actions Created

-4K Saved EC Tasks/year

= 12K Net New Preventative Maintenance Actions/year

$1.2M Cost due to additional Tasks @ $100 each

Service Department: Reduce Contractor Head Count Approx. 50% of Installs performed by Contractors @ $60.00 As TCs are reduced, Staff do “would be contracted” installs

$900K Saved 15K TCs/year @ $60

$360K Saved 6K Disconnects/year @ $60

Call Center: Reduce Capacity with normal attrition $320K Saved 40K Calls/year @ $8

Savings: $380K net per year for 1m subscribers

Thank you!